Tax and accounting for consultants and professional firms.

Common tax challenges

Professional services firms carry little inventory and few fixed assets, so the tax questions concentrate almost entirely on revenue timing and on what is genuinely a business cost.

• Exporting services. Services supplied to clients outside the UAE may be zero-rated, but the conditions are specific and evidence matters. Assuming an overseas client automatically means no VAT is one of the most expensive assumptions in the sector. Zero-rated supplies also still count towards the AED 375,000 registration threshold.
• Tax point on retainers and milestones. Advance retainers, milestone billing and fees contingent on outcome each fix the point at which VAT arises differently. Invoicing late does not defer the obligation where the supply has occurred.
• Work in progress. Time worked but not yet billed is real value and is routinely absent from the accounts, understating both profit and the basis for the tax computation.
• Disbursements versus recharges. A true disbursement paid as agent is treated differently from a cost you incurred and recharged. Most firms treat both as pass-through, which is usually wrong.
• Owner-managed costs. Entertainment, travel and personal costs routed through the company are the most common Corporate Tax add-backs in this sector.

What we provide

• Review of export zero-rating conditions and the evidence to support them
• Revenue recognition aligned to engagement type
• Work in progress and unbilled revenue tracking
• Disbursement and recharge treatment set correctly
• Expense categorisation built for the Corporate Tax adjustments that follow
• VAT returns and Corporate Tax filing

Typical documents

• Client engagement letters and contracts
• Sales invoices and credit notes
• Timesheets or project records, where you bill on time
• Expense receipts and travel records
• Contractor and subcontractor invoices
• Bank statements

Our process

We start with the revenue model, because it determines both tax point and recognition. Then we structure the expense accounts so the year-end adjustments are a review rather than a search. See the adjustments that catch businesses out.

Getting started

Tell us your licence type and what is outstanding, and we will confirm which returns apply and what the deadlines are before any work begins. Send us your details, or check your position with the tax status tool.